Tuesday, October 8, 2013

Colorado Non-Profit Hospitals Net Assets Up 38% Under Obama and the Affordable Care Act

From a review of the Electronic Municipal Market Access (EMMA), I found eight Non-Profit Hospital Organizations headquartered in the State of Colorado with Net Assets at the most recent date reported of more than $400 mil each.  Below here are the Net Assets of these eight at both the most recent reported date and at the beginning of the Obama Administration:






2008 2008 Obama




Most
or or ACA



Most Recent
2009 2009 and



Recent Balance
FYE Balance US Fed



Balance Sheet
Balance Sheet Bump
City State Sheet Net
Sheet Net %
Hospital Organization HQs HQs Date Assets
Date Assets Change




mil $s

mil $s









Catholic Health Initiatives Inverness CO Jun 13     8,246
Jun 09     5,505 50%
SCL Health Systems Denver CO  Jun 13      2,156
Dec 08     2,263 -5%
U Colorado Health Ft. Collins CO  Jun 13      1,818 Sep 11     1,319 38%
Children's Hospital Colorado Aurora CO  Jun 13      1,188
Dec 08        678 75%
University Colorado Hospital Aurora CO Jun 12        931
Jun 09        471 98%
Poudre Valley Health System Ft. Collins CO Jun 12        592
Jun 09        394 50%
Denver Health & Hosp Authority Denver CO  Jun 13         419
Dec 08        406 3%
Memorial Health System Colorado Springs CO Sep 12        410
Dec 08        367 12%









Total all 8


   15,760

   11,403 38%


As you can see from the above chart, the Total Net Assets of these eight Colorado Non-Profit Hospital Organizations increased by a solid 38% to $15.760 bil during the Obama Administration.  This is particularly noteworthy since this 38% total Net Asset growth was over an average of only 3.63 years.


University Colorado Hospital generated Total Bottom Line Profits (Excess of Revenues over Expenses) of $448 mil in the three years through June 2013, which was an extremely high 17.3% of its Total Revenues over the same time period.  This 17.3% Bottom Line Profit Margin is much higher than the 9.6% Combined Bottom Line Profit Margin of the 30 prestigious Dow Industrial companies. 

Children's Hospital Colorado generated Total Bottom Line Profits (Excess of Revenues over Expenses) of $440 mil in the most recent 4.5 years, which was an extremely high 14.3% of its Total Revenues over the same time period.  This 14.3% Bottom Line Profit Margin is much higher than the 9.6% Combined Bottom Line Profit Margin of the 30 prestigious Dow Industrial companies.

The huge Catholic Health Initiatives generated Total Bottom Line Profits (Excess of Revenues over Expenses) of a massive $2.402 bil in the most recent four years, which was a high 6.6% of its Total Revenues over the same time period.

SCL Health Systems generated Total Bottom Line Profits (Excess of Revenues over Expenses) of $457 mil in the most recent 4.5 years, which was a very reasonable 4.4% of its Total Revenues over the same time period.  


Very positively impacting this major increase in the Net Assets (Financial Strength) of these hospitals were actions taken by both the Obama Administration and the US Fed to strengthen the US Financial Foundation which was severely damaged from the financial meltdown in late 2008.

In addition, the Affordable Care Act (ACA) has also played a key role in this increase in Net Assets (Financial Strength) of these Non-Profit Hospital Organizations.

A remarkable thing is that these robust increases in Net Assets of these Non-Profit Hospital Organizations occurred when these Non-Profit Hospitals were also able to substantially bend down the Total US Health Care Cost Curve in each of the most recent three years.

With future Non-Profit Hospital Organizations' Hospital Operating Income being bolstered by both many of the Uninsured getting insurance and by the many of the Underinsured getting much better insurance, both under the ACA,  future Net Asset growth of these Non-Profit Hospital Organizations should be very robust.  And for States electing to expand Medicaid, this future Net Asset growth will be exceptionally robust.